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Answers in Selecting an Advisor

What questions should I ask when selecting a financial planner? How do I know if you can trust a financial advisor? Learn from the experts themselves on how you can find an advisor that best fits your specific needs.

It is important to meet with a couple of advisors before you choose. There are some firms and advisors who provide planning in order to just sell products. Understanding how you advisor is paid is important and if they are acting as your Fiduciary.
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It is important to meet with a couple of advisors before you choose. There are some firms and advisors who provide planning in order to just sell products. Understanding how you advisor is paid is important and if they are acting as your Fiduciary. Many times working with a Registered Investment Advisor can help as usually do not sell commissioned products and if they do are required to disclose any conflict of interest.

CFP is the gold standard. I would further check to ensure your advisor is a FIDUCIARY and Independent so they are not looking to sell you high priced products and services, but rather put your interests before their own.

Ask to see a copy of a sample financial plan 1st and ask for referrals. Also, ask if the plan comes with a 100% money back guarantee. If you don't see value in the plan, they you shouldn't have to pay.

Ask how they get paid 1st--you'll want to know if they are commissions, fees, or both.
2nd, ask to see a copy of a financial plan that they've prepared for other clients. If they are a true planner, they'll have one ready to show you. It should cover
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Ask how they get paid 1st--you'll want to know if they are commissions, fees, or both.

2nd, ask to see a copy of a financial plan that they've prepared for other clients. If they are a true planner, they'll have one ready to show you. It should cover investments, insurance, taxes, health care, etc. Read through stuff and see if that makes sense.

Find out how long they've been in the business and ask what makes them different from everybody else.

I think that this depends on the clients goals and comfort level, but I can tell you that I have many successful client relationships out of our immediate service area. I travel to meet each client face to face once a year and everything else is handled
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I think that this depends on the clients goals and comfort level, but I can tell you that I have many successful client relationships out of our immediate service area. I travel to meet each client face to face once a year and everything else is handled easily using technology (email, phone, skype, etc.). Although working with a local advisor has some small advantages, if you have found an advisor you like who is out of the area, don't let that preclude you from working with him/her if you can both agree on the service terms.

Today with tech it doesn't have to be someone local if it works. I have many clients I've never met since i use lots of online meeting tools and screen sharing. All advisors don't work this way but some do so shop around.

Not necessarily. I've had clients in many different cities and states. I worked with some for years without ever meeting them in person, but I don't think this is ideal. I've found there is nothing like meeting with someone in person at least once
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Not necessarily. I've had clients in many different cities and states. I worked with some for years without ever meeting them in person, but I don't think this is ideal. I've found there is nothing like meeting with someone in person at least once a year. People are more likely to be open and honest in a face to face meeting than over the phone. I think you also form a better bond when meeting in person.

I still have clients far away from me, but I meet with them at least twice a year. I think that's especially important if you have elderly clients where you may help detect the possibility of diminishing faculties.

Your question is a little vague. What are you trying to accomplish? If you have an investment management question, consider talking to someone that has a CFA. If you have a tax question, seek out a CPA or EA. If you're looking for retirement or financial
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Your question is a little vague. What are you trying to accomplish? If you have an investment management question, consider talking to someone that has a CFA. If you have a tax question, seek out a CPA or EA. If you're looking for retirement or financial planning help, you may want to speak with a CFP. Any of these financial professionals should give you a free initial consultation. Go talk to several and find out if they know any more than you do.

We have created a free public service guide to help investors realize when and why they might require additional help from a professional. Below are just some excerpts for your review:
What are some important questions that I should ask myself to determine
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We have created a free public service guide to help investors realize when and why they might require additional help from a professional. Below are just some excerpts for your review:

What are some important questions that I should ask myself to determine if I need the services of a financial advisor?
• Do I have time to develop a well thought-out strategy and invest my own assets?
• Is investing my own assets the highest and best use of my time?
• Do I understand the constantly changing complexities of the financial markets?
• Do I have the knowledge to research investments, track their performance, and make changes?
• Can I stay objective and not make emotional financial decisions?
• Does it make sense to manage my own assets as I get older?
• Who will step in and manage my assets if I suffer a debilitating illness?

Who uses the services of financial advisors?
• Based on a nationwide Paladin Registry study, 77% of those surveyed with at least $100,000 of investable assets use the services of financial advisors.
• The remaining 23% develop their own financial plans, conduct their own research, and make their own investment decisions on an unassisted basis.

Who makes the investment decisions if I use the services of a financial advisor?
• You can delegate work to professionals, but retain control over financial decisions. This is called a non-discretionary relationship. Advisors cannot buy or sell investments without your approval in advance. Or, you can delegate the work and the decision-making to professionals. This is called a discretionary relationship.

What is a fiduciary advisor?
• They are the ideal professionals because they are RIA or IAR and they acknowledge their fiduciary status.
• Fiduciary advisors are held to higher ethical standards, they have more disclosure requirements, and they are more accountable for the quality of their advice.
• Most high quality professionals are fiduciary advisors.

I agree with much of what others said. Here are some questions I would be asking:
1) Do I know what I own and what I owe? Do I review it at least once per year?
2) Do I know what "Risk" is for a portfolio of stocks and bonds?
3) Do I know how much risk
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I agree with much of what others said. Here are some questions I would be asking:

1) Do I know what I own and what I owe? Do I review it at least once per year?
2) Do I know what "Risk" is for a portfolio of stocks and bonds?
3) Do I know how much risk I want to take?
4) Do I know how much risk I am currently taking (stocks/bonds)?
5) Have I weighed risk vs reward in investing?
6) Do I understand interest rates and debt? Have I paid off all my credit card debt (best investment you can ever make)
7) Do I take advantage of employer retirement plans, IRAs, or other tax advantaged vehicles?
8) Do I enjoy researching investments?
9) Do I know how well my portfolio has performed the past year, 3 years, or 5 years?
10) Do I know how much I need to retire/put kids through college?
11) Am I on the correct path to get there through saving and investing?
12) Do I see value in having someone help me with these questions?
13) Do I see value in having an expert to bounce ideas off of?

One example in my personal life for my family I can bring up. When it was time to draft a will, trust, and complete the other legal documents for my estate plan, I hired a trusted estate attorney and I paid her the same amount she would charge my clients. Am I trained, knowledgeable, help my clients in estate planning matters? Yes. Could I have downloaded a will and trust from the internet and attempted to create my own? Possibly. However, my estate planning for my family was important enough to me to hire an expert and work with her to create the estate plan that met the needs of my family. For me, the cost was well worth the value I received.

Wow seems like everyone has some really good advice here. I guess i would add that if you are asking the question, when you most likely need some guidance. It's often not what we know that causes the issues, but what we didn't know or most likely something
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Wow seems like everyone has some really good advice here. I guess i would add that if you are asking the question, when you most likely need some guidance. It's often not what we know that causes the issues, but what we didn't know or most likely something you thought you knew but somehow misunderstood. With a proper financial relationship those areas can be addresses sooner than later and smaller issues now can be corrected before they become a financial calamity later.

Information is provided 'as is' and solely for informational purposes, not for investment purposes or advice.BrightScope is not a fiduciary under ERISA. BrightScope is not endorsed by or affiliated with FINRA.